Design Studio - exploded!

neontet
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13 years 10 months ago - 13 years 10 months ago #4076 by neontet

Replied by neontet on topic Re:Design Studio - exploded!

PKC, u r very zhun! congrats! This offer by Depa is not going to be taken up by minorities. There is no undertaking by other shareholders to sell to Depa. In the 1st place, the management doesnt own a lot of stock. Bernard Lim, the CEO, owns about 10%. Rest of the team owns even less. Elin doesnt own stock, according to talk. Prudential Asset Mgt - hah! Worse still, I am sure they will pressure Depa for a much better price. Prudential bought at higher than 55 cents, a big chunk of it probably, as I guess from the article abt their becoming SS www.nextinsight.biz/content/view/1927/79/ So w/o sufficient support, Depa will end up with nothing much more than its current stake. that\'s my guess. PKC, make your forecast.

Last edit: 13 years 10 months ago by neontet.

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PKC
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13 years 10 months ago #4078 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

Currently, the major share holders are Depa (25%), SC Wong (previously Straits Construction) 16%, Chairman/CEO (6%), Prudential (5%). Prudential bought it at 66c back in Jan 10, I don\'t think they will be happy selling it half a year later at 55c. So even if Depa manages to cross 50%, I don\'t think they can reach 90% to have it delisted, as long as the other major share holders are not selling.

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PKC
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13 years 10 months ago #4079 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

Don\'t let Depa bullies the minority share holders! See what Kim Eng analyst said this morning: Design StudioÃ¢â¬â¢s major shareholder Depa made an offer to acquire the companyÃ¢â¬â¢s shares at 55 cts apiece, representing a premium of 17.5%. This offer is conditional upon Depa receiving valid acceptance of more than 50%. Comment: We do not think this is an attractive offer as it values Design Studio at a mere excash FY10F PER of 3.6x. Recall that Cityneon, its peer, was acquired by Star Publications in 2008 at 12.6x PER.

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Dongdaemun
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13 years 10 months ago #4080 by Dongdaemun

Replied by Dongdaemun on topic Re:Design Studio - exploded!

Today, there is so much buying at 55 and 55 cents that it\'s clear the market doesnt believe the offer price of 55 cents is right by Depa. So Depa is not going to get much in terms of acceptance. Secondly, the market by buying at 55-56 cents belives that Depa will up its offer ... to 65 cents ? If Depa is serious abt buying DS, it has to up its offer price. 65 cents wld be a good & reasonable offer. Prudential probably will not agree with me, cos it was buying up to around that level in January, which means it thinks DS is worth at least 80-90 cents. Depa: pls up yr offer asap!

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mokooi
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13 years 10 months ago #4082 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

is the any major shareholders already agree to sell to Depa? or any parties acting in concert with Depa? if no, the Depa is most likely not serious about the acquisition.. then again, why would they go through the trouble if they are not serious? nothing better to do with their time? But then again, if the the market collapsed ala 2008 again, Depa might just get their way ... :side:

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mokooi
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13 years 10 months ago #4083 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

another possibility might be that this offer is just for show, to drive up the share price for someone to off-load their shares..?

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